The SBA named first set of states and counties where small businesses are eligible to for coronavirus relief loans.
The Small Business Administration (SBA) has approved disaster declarations due to the coronavirus pandemic in five states and Washington D.C., enabling small businesses adversely affected in those states to apply for up to $2 million in low-interest relief loans.
The governors of California, Washington, Rhode Island, Connecticut, Maine and the mayor of Washington D.C. have formally requested that the SBA declare regions or their entire state as impacted by the outbreak, and the SBA has approved each of those designations. Small businesses in the designated counties, or even the entire state in some cases, can now apply for disaster relief loans, according to an SBA spokesperson.
The coronavirus relief loans were announced last week by President Donald J. Trump as a stimulus to help small businesses facing downturns in business due to the outbreak. Impacted businesses can apply for up to $2 million in loans with interest rates between 2.75% and 3.75% depending on the type of business. The funds can be used for paying debts, bills, accounts payable, payroll, among other reasons.
There was some confusion after the program was announced by many businesses on how to apply for the loans.
The process outlined by the SBA requires that the governor of each state formally request the SBA designate counties or their entire state as eligible for the coronavirus relief loans before business can apply for them.
States and Counties Approved for SBA Relief Loans
To date, five states and Washington, D.C. have been approved, according to SBA spokesperson Carol Chastang.
Businesses in following list can apply for disaster loans statewide:
- Rhode Island
- Washington, D.C. (districtwide)
California Counties Eligible for Coronavirus Relief Loans
Businesses in the following 35 counties can now apply for disaster loans in California:
- Contra Costa
- El Dorado
- Los Angeles
- Orange County
- San Bernardino
- San Diego
- San Francisco
- San Joaquin
- San Mateo
- Santa Clara
- Santa Cruz
Washington State Counties Eligible for Coronavirus Relief Loans
Businesses in the following 32 counties in Washington state can now apply for disaster relief loans:
- Grays Harbor
- San Juan
- Walla Walla
Contiguous Counties Eligible for Coronavirus Relief Loans
The SBA has also declared businesses as eligible for disaster relief loans in the following counties that neighbor the approved states:
- Benewah, Latah and Nez Perce counties in Idaho
- Gilliam, Hood River, Morrow, Sherman, Umatilla and Wasco counties in Oregon
- Carroll, Rockingham and Stratford in New Hampshire
- Berkshire, Hampden, and Worcester in Massachusetts
- Dutchess, Putnam and Westchester in New York
Timeline for Approving Governor’s Request and SBA Loans
The timeline for approving a governor’s request to designate a state or specific counties eligible is no longer than 48 hours, Chastang stated via email.
It can take between two to three weeks for the SBA to make a decision once a loan application is submitted by a business. If the loan is approved, disbursement of funds can be made within five days of receiving the loan closing documents, Chastang said.
Where to Apply for SBA Coronavirus Relief Loans
The SBA said that small businesses can apply for the loans directly on their website at www.sba.gov/disaster. Business owners can call the disaster customer service center at 800-659-2955, or email [email protected]. The deaf and hearing impaired my call 800-877-8339.
Editor’s Note: Neither Workest or Zenefits is affiliated with the Small Business Administration (SBA) or a lending organization. This article is intended for informational purposes only.